Most amusing

Ritchie keeps telling us that government spending pays for itself. Spend on the infrastructure and growth comes which pays the debt.

Cayman islanders say the previous government spent a huge amount of money upgrading the island’s ancient infrastructure, betting it would be able to pay back a budget deficit of $67.5m as its financial sector continued to grow. But the global financial crisis has created a huge black hole in its budget.

Oh, you mean it doesn\’t?

The amusement is of course that that is Ritchie himself quoting that in support of his views that government spending always pays for itself.

6 thoughts on “Most amusing”

  1. How does he know whether it pays for itself given it isn’t measured?

    It is like me saying that I have never been timed running the mile, so therefore I have probably broken the world record at some point.

  2. I often think that state pensions should be index linked to the size of the economy. Then they can put their money where there mouths are about all state spending being an investment in the economy.

  3. “On the other there are the native Caymanians, many of whom live in simple single-storey breeze block homes typical of the islands, with chickens and goats running about on scrub-like surrounding land. They are poor people who largely exist on the island to serve the wealthy in the hotels, private clubs and staffed households.”

    Raising taxes on rich people is going to do what except drive rich people away, leaving those people to either work for tourist hotels or in subsistence farming?

    And as for “single-storey breeze block homes”, there’s nothing wrong with a breeze block homes. Most homes in the UK are built of breeze blocks and bricks are put on for decoration.

  4. Chris M – could you expand on your idea? Who do you mean by ‘their’ – pensioners, Ministers, left-wingers or taxpayers?

  5. They are poor people who largely exist on the island to serve the wealthy in the hotels, private clubs and staffed households.

    Their existence is a fact apart from their purpose as perceived by any particular observer. If there are wealthy people there to be served, then that is what they can do, should they choose, but they can still choose to be fishermen or subsistence farmers. If there are no wealthy people, they will not have the former choice. But they will still exist.

  6. Matthew, I mean that in the same way that many private sector pensions are -albeit indirectly – linked to the size of the economy (in that if the ecocomy tanks, their pensions go down, even if it id not a direct index link), that public sector pensions should likewise be linked to the size of the economy. This would in and of itself be fair. But as an added benefit, it may make those who live off the tax payer think twice before advocating that billions ought to be spent on this or that harebarined scheme, justifiying in on the basis that it will be good for the economy.

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